A Harsh Winter is Coming; Oil Minister Reports 6% Increase in Gas Consumption

With the cold weather in Iran, gas consumption has significantly increased, and the Oil Minister has reported a 6% rise in gas usage across various sectors. Experts believe that the continued upward trend in gas consumption, alongside limited production capacity, will lead to gas shortages during the cold days of the year, heralding a 'harsh winter' for both the public and officials. Javad Owji, the Oil Minister of Ebrahim Raisi's government, stated today, Wednesday, December 8, that the gas company reported a 6% increase, nearly reaching 465 million cubic meters in residential, commercial, and non-major industrial sectors. On Tuesday, December 7, the head of the National Iranian Gas Company's dispatching department announced a 9% increase in gas consumption in the residential sector, indicating that the cold weather and its persistence will pose a significant challenge for the National Gas Company. The crisis of gas production and supply in Iran, as one of the 'energy giants of the world,' is deeply rooted; in June of this year, the Research Center of the Parliament published a report titled 'Strategic Issues in the Energy Sector in the Seventh Development Document - Gas Storage,' addressing the unfavorable gas balance in the country. This report highlighted the neglect of sustainable development and investment in the oil industry, emphasizing that if this trend continues, by the year 1420 (2041), the total natural gas supply will reach 7.898 million cubic meters per day. The report continues that during this period, the consumption across all sectors will amount to 8.1410 million cubic meters. The parliamentary research arm noted that this year, a daily imbalance of 512 million cubic meters will occur, meaning consumption will significantly outpace production. Last year, amid gas shortages and increased energy consumption due to falling temperatures in Iran, an official from the National Iranian Gas Company asked people to turn off one of their home heaters 'for 6 hours a day' to save energy. This request came when the imbalance in the gas industry led to gas cuts for people in the north and northeast of the country, and the government resorted to cutting gas supplies to offices, ministries, and companies to combat this crisis. The energy supply crisis leads to gas cuts in winter and electricity cuts in summer for the public and industries, which, alongside increased mazut burning and air pollution, imposes billions of dollars in losses on Iranian industries. Research report; comparison of Iran's oil production with a regional competitor: Iran's decline, UAE's rise. Winter is coming with 'mazut burning'; $6 billion loss from electricity cuts in summer. Continued electricity cuts for homes and industries; nuclear power plants contribute 5% to the country's electricity production. The 'imbalance' between gas production and consumption is pushing Iran towards gas imports. Iraq's protest against the reduction of gas exports from Iran; the Islamic Republic claims there are technical reasons. ISNA news agency; with the current trend, Iran will soon become a gas importer.